FG Explains Why It Will Not Fix Crude Oil Price, Speaks on NNPC, Dangote Not Supplying Enough Fuel
- The Nigerian Upstream Petroleum Regulatory Commission stated that it will refrain from manipulating the price of crude oil
- NMDPRA’s chief spoke on the need to adhere to global best practices to enable the willing-seller, willing-buyer option
- He promised that the commission will always be willing to consider operational problems brought up by industry players in a constructive manner
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The NUPRC, or Nigerian Upstream Petroleum Regulatory Commission, has declared that it will not engage in crude oil price rigging.
Source: UGC
Commission Chief Executive Engr. Gbenga Komolafe stressed the importance of following international best practices in order to facilitate the willing-seller, willing-buyer option.
The statement said:
“He (Komolafe) expressed commitment to the willing-seller, willing-buyer option which aligns with international best practices and affirmed that government would support the upstream sector’s optimal functioning without resorting to price-fixing.”
He gave the assurance that the Commission will always be open to constructively addressing operational concerns raised by industry participants, provided that doing so would support the sector's expansion and be in the best interests of the country.
NUPRC met key players
In order to review and clarify matters pertaining to domestic crude supply responsibilities between producers and refiners, the NUPRC met with key players in the nation's oil and gas industry on Wednesday in Abuja.
The announcement stated that the meeting's goal was to improve Nigeria's energy security.
The now-regular meeting gave NUPRC management, members of the Oil Producers Trade Section (OPTS), and the Independent Petroleum Producers Group (IPPG) a chance to work together to make sure the upstream industry functions efficiently within the law while also taking into account the financial interests of all parties involved.
Pre-allocation of crude oil to domestic refiners, pre-existing contracts amid domestic crude supply commitments, and price concerns were among the operational challenges that the OPTS and IPPG sought clarity on during the meeting.
NUPRC still committed
Komolafe informed stakeholders that the Commission is still dedicated to enforcing the law's requirements for industry regulation while simultaneously promoting sector growth and refraining from taking capricious measures that would deter operators or impede investments.
The Commission presented a five-point agenda in January that would support higher oil production in 2025.
In accordance with the Petroleum Industry Act (PIA) 2021, this entails putting plans into action to increase production by one million barrels, improving the accuracy and transparency of hydrocarbon measurement through metering and cargo regulations, digitizing upstream regulatory activities for better compliance, maximizing unit costs per barrel to increase revenue, and holding licensing bid rounds to revitalize non-performing assets.
The Commission has created a template to determine the demands of each link in the value chain, the CCE also disclosed.
By utilizing the skills of many participants, this template seeks to close gaps and promote cooperation, networking, and operational optimization. The purpose of Wednesday's discussion was to identify and respond to stakeholder demands as they emerge throughout operations.
The Commission announced early this month that major regulatory actions have been taken to enforce compliance with the Domestic Crude Supply Obligation (DCSO) in order to guarantee a steady supply of crude oil to domestic refiners. These actions include the creation and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 and the implementation of a DCSO framework and procedure guide.
The Commission had made it clear that it would not hesitate to refuse export permits for crude oil meant for domestic refining if companies did not fulfill their responsibilities, and that it would aggressively enforce laws governing implementation and defaults by oil corporations.
Komolafe explained during Wednesday's meeting that the mention of export permit denial was intended solely for non-compliant operators who might take illegal shortcuts and was not a threat to legal industry participants.
Source: Getty Images
He emphasized that while the government is dedicated to safeguarding investor interests, it will not make concessions on anything that could endanger energy security or jeopardize national interests.
As long as prices are fair and reasonable, the CCE reaffirmed the government's position that it will not interfere with product pricing.
FG says NNPC, Dangote Rrefinery not supplying enough fuel
Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that Nigeria’s three functional refineries supply less than 50% of the country’s petrol consumption despite improved refining capacity.
The NMDPRA said the shortfall in petrol supply was being met by importing petroleum products.
The authority also said the country’s petrol consumption has fallen to 50 million litres daily.
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Source: Legit.ng
